Recovery Centers of America Raises $231.5 Million to Revolutionize Addiction Treatment and Behavioral Healthcare and Become One of the World’s Largest Providers by Bringing Comprehensive Centers for Addiction Medicine to US Neighborhoods

Capital from Deerfield Management Company represents one of the
largest early-stage healthcare raises in 2015; first RCA Center to open
in May, 2016, in Earleville, MD

KING OF PRUSSIA, Pa.–(BUSINESS WIRE)–Recovery
Centers of America (RCA) today announced it has secured a
$231.5 million commitment from Deerfield
Management Company, the New York-based healthcare investment firm
with more than $5 billion under management. The company will use these
funds to create one of the world’s largest addiction treatment and
behavioral healthcare companies.

Disrupting the Status Quo on the Road to Recovery

“Recovery Centers of America will disrupt the industry by fundamentally
changing the availability, quality and delivery of substance abuse
treatment,” says Brian O’Neill, founder and CEO of Recovery Centers of
America. “We will completely change the status quo that requires
patients to travel thousands of miles for treatment. We are bringing
full service Centers for Addiction Medicine to our patients’
neighborhoods so they can receive all methods of treatment in one place.
We are working with insurance companies to streamline payment
methodologies. Our goal is to make substance abuse treatment as readily
available as treatment for other chronic diseases, such as diabetes and
asthma.”

The concept behind Recovery Centers of America came to O’Neill, a
nationally known real estate developer, during the recession. “The
recession had been very tough on my real estate business and it got me
thinking that I wanted to spend the rest of my life saving lives,” he
says.

Leslie Henshaw, partner at Deerfield Management, comments, “A
convergence of factors in behavioral health is driving an urgent need
for treatment options that integrate the entire continuum of care to
achieve clinical efficacy that, to date, has been hard to deliver or
document.” She went on to add that, “Deerfield shares the company’s
vision and strategy for attacking this challenge, and we believe that
combining our capital and innovative market research capabilities with
Recovery Centers of America’s uniquely experienced management team can
create a transformative platform for delivering addiction treatment
services.”

A Chilling Epidemic

Substance abuse is now one of the fastest-growing epidemics in America.
Last year, 22.7 million Americans met criteria for diagnosis of
substance abuse or dependence, with only 2.5 million receiving
treatment. According to the Robert
Wood Johnson Foundation, nearly 44,000 people die from drug
overdoses each year, a figure that more than doubled from 1999 to 2013
and now exceeds the number of individuals killed in car crashes.

Woefully Outdated, Piecemeal and Underfinanced Treatment Options

“The opiate epidemic in America has simply overwhelmed our country and
our healthcare system,” begins Deni Carise, Ph.D. and Chief Clinical
Officer of Recovery Centers of America. “Patients who start with
prescription pain killers soon have turned to cheap street-level heroin,
creating an entirely new class of substance abuser that desperately
needs help to overcome their disease and rebuild their lives.”

Carise continues, “The struggle and discrimination these individuals and
their families face, and the poor quality of limited care they receive,
is appalling on clinical, political and moral levels. Recovery Centers
of America is battling for our patients, bringing world-class treatment
options to the very neighborhoods where patients live and work.”

Recovery Centers of America offers a longer and more comprehensive
continuum of care, including detox, inpatient, outpatient and ongoing
support services through its centers. Its locations will serve as
centers of sobriety, treatment, spiritual life and healthy sober living
for individuals and their families.

Growth Plans

The company has acquired eight development sites in the Northeast U.S.
and plans to open its first campus in May of 2016 in Earleville,
Maryland, with additional campuses opening in the Washington, D.C.,
Boston, and Philadelphia metro areas in 2016. Current plans contemplate
operating over 1,200 beds by the end of 2017.

World-Class Management Team

Recovery Centers of America has assembled a world-class team of
professionals charged with re-envisioning every aspect of substance
abuse treatment from clinical care, to technology and electronic medical
record keeping, as well as the design and build of centers and advocacy
for its patients.

That team includes:

J. Brian O’Neill, CEO and Founder, a nationally recognized real
estate developer who has decades of experience developing, zoning,
obtaining approvals, and securing financing of commercial, residential
and hospitality real estate projects throughout the Northeast United
States.

Deni Carise, Ph.D., Chief Clinical Officer, a former Chief
Clinical Officer with some of the world’s leading behavioral treatment
providers, including CRC
Health Group and Phoenix
House. An adjunct professor at the University of Pennsylvania,
Carise has consulted with governments worldwide to develop national
systems for behavioral health treatment.

John Paul (J.P.) Christen, Chief Operating Officer, a
former Vice President of Acute Care for Universal
Health Services, Inc. (UHS), a portfolio of 24 acute care hospitals
with 5,600 beds nationwide.

Kevin McClure, Chief Financial Officer, a former Chief Financial
Officer with NHS
Human Services, the nation’s largest community-based non-profit
provider of human services.

John Henry, Chief Marketing Officer, a former Executive Vice
President and Chief Marketing Officer of Caron
Treatment Centers, one of the nation’s most respected non-profit
providers of drug and alcohol addiction treatment.

Kathy Junod, Chief Information Officer, a former Executive
Director of IT at Auxilium Pharmaceuticals, Inc., the biotech and
pharmaceutical company recently acquired by Endo
Pharmaceuticals.

About Recovery Centers of America

Based in King of Prussia, PA, Recovery Centers of America is committed
to advocating for some 22.7 million Americans suffering from behavioral
health and substance use disorders. The company, which is opening
treatment centers throughout the Northeast, is transforming the way
treatment is delivered in an industry in desperate need of change.
Recovery Centers of America’s neighborhood-based Centers for Addiction
Medicine are designed based on the latest scientific research that
indicates sustained recovery is more likely when patients stay connected
to and supported by family and friends, while building other, ongoing
support networks. By allowing patients to receive treatment in an
atmosphere more akin to a college campus with Starbucks-like appeal,
Recovery Centers of America helps overcome the stigma of addiction and
its treatment, which is essential to meaningful recovery.

For more information visit www.recoverycentersofamerica.com.

About Deerfield Management Company

Deerfield is an investment management firm committed to advancing
healthcare through investment, information, and philanthropy. For more
information, please visit www.deerfield.com.

Contacts

For Recovery Centers of America
Greg Matusky, 610-642-4045
greg@gregoryfca.com